From April, 2022, PostFinance will begin replacing its existing debit card or “Postcard” with a new PostFinance debit card. The change will be made gradually and be completed in the spring of 2023. The new card includes all of the former card’s features, but also functions as a Debit Mastercard. The new debit cards bear both the PostFinance and Mastercard logos.
What is changing for PostFinance customers?
The existing PostFinance debit card which is being phased out already lets you make cash withdrawals outside of Switzerland, but it cannot be used to pay for purchases in foreign countries. For decades, PostFinance decades have only been able to use their debit cards for card payments in Switzerland. That is changing, as the new PostFinance debit card can be used to pay anywhere that accepts the Debit Mastercard.
Important: The new debit card can also be used for online payments. But PostFinance customers have to sign up for online banking before they can use the card for online purchases at all merchants which accept the Debit Mastercard.
“Not being able to pay at restaurants and market stands will also become less likely,” says moneyland.ch expert Ralf Beyeler. If a merchant does not use the PostFinance debit card system but accepts Mastercard, or vice versa, you can use your card to pay.
What is changing for merchants?
As long as a merchant has a contract with PostFinance, payments with PostFinance debit cards will continue to be processed directly by PostFinance at the same comparatively low fees, explains Beyeler. But if a merchant does not have a PostFinance contract, the payment will be processed by Mastercard. That is the case with POS terminals from Sumup, for example. The fees for accepting payments via Mastercard are generally higher than those for PostFinance transactions.
How much does the new PostFinance Card cost?
Like the existing PostFinance debit card, the new card will not have an annual card fee. The card is included in PostFinance banking packages. Business account users will continue to pay 30 francs per year and card, as they have until now.
The cost of cash withdrawals at non-PostFinance ATMs is also unchanged. You continue to pay 2 francs per out-of-network ATM withdrawal in Switzerland, and 5 francs per withdrawal outside of Switzerland. Both local and international cash withdrawals are free for users of the Smart Plus, Young, and Student bank packages.
For card payments outside of Switzerland, which are possible with the new debit card, there is a 1.5 percent foreign transaction fee.
How do foreign transaction fees compare to other debit cards?
PostFinance charges a 1.5-percent foreign transaction fee for purchases outside of Switzerland. Many other Swiss banks charge a flat fee of 1.50 francs for each purchase from foreign merchants using their debit cards. Some banks charge an additional fee (0.5 percent, for example) on top of the flat fee. A few Swiss banks charge a higher percentage (1.25 percent, for example), with a minimum fee or 1 or 1.50 francs. A few banks do not charge foreign transaction fees at all.
On the whole, the PostFinance debit card is often cheaper for smaller purchases (up to 100 francs) from foreign merchants. For foreign transactions larger than 100 francs, it is generally more expensive than debit cards from other big Swiss banks.
But currency exchange fees are just as important as foreign transaction fees. Exchange rates can vary broadly between banks, and also between individual days. PostFinance uses two different exchange rates for the new debit cards: A banknote rate for cash withdrawals in foreign currencies, and a forex rate for card payments outside of Switzerland.
Good to know: Neobanks are often much cheaper for international transactions. Some neobanks do not charge foreign transaction fees at all, and use more favorable exchange rates than PostFinance and other large banks.
You can find a comprehensive guide to withdrawing money and making payments outside of Switzerland using debit cards here.
“About time!”
Unlike customers of other Swiss banks, which have long used debit cards from Visa and Mastercard, PostFinance customers have not been able to use their debit cards for direct card payments outside of Switzerland. “It is about time that PostFinance customers are finally able to use their debit cards to pay at foreign merchants,” says moneyland.ch CEO Benjamin Manz.
It is unlikely that the new debit card in and of itself will attract more customers to PostFinance. Debit Mastercard and Visa Debit cards are already offered by many Swiss banks.
“It is a shame that the new PostFinance Card does not yet work with Apple Pay and Google Pay, among others,” critiques Ralf Beyeler.
More on this topic:
Compare Swiss private accounts and bundled debit cards now
Guide to making cash withdrawals and card payments in foreign countries
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